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Around the Horn. Assuming the following quotes, calculate how a market trader at Citibank with $ 1 , 0 0 0 , 0 0 0
Around the Horn. Assuming the following quotes, calculate how a market trader at Citibank with $ can make an intermarket arbitrage profit.
Citibank quotes US dollar per pound
National Westminster quotes euros per pound
Deutschebank quotes US dollar per euro.
$
$
Calculate the profit loss from the intermarket arbitrage profit through path # below: Round to the nearest cent.
Path #: US$ to euros to pounds to US$
Starting amount
Convert to euros at Deutschebank quote
Convert euros to pounds at NatWest quote
Convert pounds to US$ at Citibank quote
Arbitrage gain loss
Calculate the profit loss from the intermarket arbitrage profit through path # below: Round to the nearest cent.
Path #: US$ to pounds to euros to US$
Starting amount
Convert to pounds at Citibank quote
Convert pounds to euros at NatWest quote
Convert euros to US$ at Deutschebank quote
Arbitrage gain loss
table$
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